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CA Intermediate · Taxation · GST in India - An Introduction

Sharma Traders, a registered dealer in Indore (Madhya Pradesh), sells goods worth Rs 4,00,000 to a registered buyer in Nagpur (Maharashtra). The goods are moved from Indore to Nagpur. Which of the following taxes will be levied on this transaction?

IGST only is levied, because the goods move from Madhya Pradesh to Maharashtra, making it an inter-State supply. Inter-State supplies attract IGST under the IGST Act, 2017, while CGST and SGST are charged only when the supplier's location and the place of supply are in the same State.

  1. ACGST and SGST of Madhya Pradesh
  2. BIGST onlyCorrect
  3. CCGST and SGST of Maharashtra
  4. DCGST only

Explanation

The supplier is located in Madhya Pradesh and the place of supply is in Maharashtra, so this is an inter-State supply. Inter-State supplies of goods attract IGST, which is collected by the Centre and apportioned to the destination State. CGST and SGST apply only to intra-State supplies.

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